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HomeMy WebLinkAboutResolution 5712-02-2023 A Resolution NO. 5712-02-2023 SUPPORTING A HOUSING TAX CREDIT APPLICATION FOR 7340 KINGSWOOD SENIOR LIVING AND COMMITTING DEVELOPMENT FUNDING WHEREAS,the City's 2022 Comprehensive Plan is supportive of the preservation,improvement, and development of quality, affordable, accessible housing; WHEREAS, the City's 2018-2022 Consolidated Plan makes the development of quality, affordable, accessible rental housing units for low income residents of the City a high priority; WHEREAS, 7340 Kingswood Senior Living, Ltd. an affiliate of Palladium USA, Inc., has proposed a development for mixed-income affordable multifamily rental housing named 7340 Kingswood Senior Living to be located at 7340 Kingswood Dr. in the City of Fort Worth; WHEREAS, 7340 Kingswood Senior Living, Ltd. has advised the City that it intends to submit an application to the Texas Department of Housing and Community Affairs ("TDHCA") for 2023 Competitive (9%)Housing Tax Credits for 7340 Kingswood Senior Living, a new complex consisting of approximately 90 units, of which at least ten percent (10%) of the total units will be set aside for households earning at or below thirty percent (30%) Area Median Income; WHEREAS,TDHCA's 2023 Qualified Allocation Plan ("QAP")provides that an application for Housing Tax Credits may receive seventeen (17) points for a resolution of support from the governing body of the jurisdiction in which the proposed development site is located; and WHEREAS,the QAP also states that an application may receive one (1) point for a commitment of development funding from the city in which the proposed development site is located. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: The City of Fort Worth, acting through its City Council, hereby confirms that it supports the application of 7340 Kingswood Senior Living, Ltd.to the Texas Department of Housing and Community Affairs for 2023 Competitive (9%) Housing Tax Credits for the purpose of the development of 7340 Kingswood Senior Living to be located at 7340 Kingswood Dr. (TDHCA Application No. 23000), and that this formal action has been taken to put on record the opinion expressed by the City Council of the City of Fort Worth. The City of Fort Worth, acting through its City Council, additionally confirms that it will commit to fee waivers in an approximate amount of $25,943.00 to 7340 Kingswood Senior Living, Ltd. conditioned upon its receipt of Housing Tax Credits. The City Council also finds that the waiver of such fees serves the public purpose of providing quality, accessible, affordable housing to low- and moderate- income households in accordance with the City's Comprehensive Plan and Action Plan,and that adequate controls are in place through the City's Neighborhood Services Department to carry out such public purpose. The City of Fort Worth, acting through its City Council, further confirms that the City has not first received any funding for this purpose from the applicant, affiliates of the applicant, consultant, general contractor or guarantor of the proposed development or any party associated in any way with the applicant, 7340 Kingswood Senior Living, Ltd. Adopted this 28th day of February, 2023. ATTEST: a oF0F°Rr0& By: U 00 G do o•l d Jannette S. Goodall, City Secretary 0000 o=d o ( �aaa� OOOOOOOo q' nEXASa�p 7340 Kingswood Senior Living I District 6 (7340 Kingswood Dr., Fort Worth,Texas 76133) +5 y` M Proposed Site K �w '�. r 1j10 - V' i • ' r — ' At i DISTRICT District 6 r gr - , 1 r- r � I 411 i ILL - ...y 4V - 40 FORTWoRT_x. 7340 Kingswood Senior Living N ©Copyright 2023 City of Fort Worth.Unauthorized reproduction is a violation of 0 0.075 0.15 applicable Iaws.This product is for informational purposes and may not have been prepared for or suitable for legal,engineering,or surveying purposes.It does not represent an on- Miles the-ground survey and represents only approximate relative location of property boundaries. The City of Fort Worth assumes no responsibility for the accuracy of said data. City of Fort Worth, Texas Mayor and Council Communication DATE: 02/28/23 M&C FILE NUMBER: M&C 23-0153 LOG NAME: 19BASSWOOD KINGSWOOD 9% HTC RESOLUTIONS SUBJECT (CD 4 and CD 6/Future CD 4 and CD 6)Consider and Adopt Resolutions of Support for 2023 Competitive(9%) Housing Tax Credit Applications for 7340 Kingswood Senior Living and the Reserve at Basswood,Approve Commitments of Development Funding in the Form of Development Fee Waivers in the Approximate Amount of$49,926.00 for Specified Developments, and Find that the Fee Waivers Serve a Public Purpose and that Adequate Controls are in Place RECOMMENDATION: It is recommended that the City Council: 1. Acknowledge the receipt of requests for City of Fort Worth support for applications to the Texas Department of Housing and Community Affairs for 2023 Competitive(9%)Housing Tax Credits from various developers; 2. Consider and adopt the attached Resolutions of Support for 2023 applications for Competitive(9%) Housing Tax Credits for 7340 Kingswood Senior Living and the Reserve at Basswood; 3. Approve fee waivers in the approximate amount of$49,926.00 as the City of Fort Worth's commitment of development funding for each of the developments that receive a Resolution of Support;and 4. Find that the fee waivers for these developments serve the public purpose of providing quality,accessible,affordable housing for low-to moderate-income households in accordance with the City of Fort Worth's Comprehensive Plan and Annual Action Plan,and find that adequate controls are in place through the Neighborhood Services Department to carry out such public purpose. DISCUSSION: On November 8,2022,the City Council adopted a policy for City of Fort Worth(City)support of applications to the Texas Department of Housing and Community Affairs(TDHCA)for Noncompetitive(4%)and Competitive(9%)Housing Tax Credits(HTC)and for City commitments of development funding(Mayor and Council Communication (M&C)22-0924).This year the City received ten applications from developers requesting Resolutions of Support for proposed 9%tax credit developments in Fort Worth. Five of the applications met the policy requirements and were previously recommended to receive resolutions of support through M&C 23-0137 and three other applications were withdrawn by their respective developers.This M&C is for the consideration of approval of 9%housing tax credit Resolutions of Support for 7340 Kingswood Senior Living and the Reserve at Basswood. Resolutions of Support: Staff requests that the City Council consider and adopt Resolutions of Support for the following developments as they have met the unit set-aside criteria and notification requirements outlined in the City's policy.Additionally, both of these developments are located in designated revitalization areas as defined by the City's 2023 Housing Tax Credit Policy. 7340 Kingswood Senior Living to be developed by 7340 Kingswood Senior Living Development, LLC,an affiliate of Palladium USA International, Inc.,to be located at 7340 Kingswood Dr., Fort Worth,TX 76133(CD 6/Future CD 6).The site for the proposed development is zoned E-Neighborhood Commercial,proposed to be changed to CR-Low Density Multifamily.The proposed development will not be tax exempt. Reserve at Basswood to be developed by Reserve at Basswood LLC,an affiliate of Pivotal Development LLC,to be located at 5601 Basswood Blvd., Fort Worth,TX 76137(CD 4/Future CD 4).The site for the proposed development is zoned E-Neighborhood Commercial,proposed to be changed to C-Medium Density Multifamily.The proposed development will not be tax exempt. Commitment of Development Funding: Per the City's 2023 HTC Policy,any development receiving a resolution of support will also receive a waiver of development fees for a value of no less than$500.00.This commitment of development funding qualifies tax credit applicants for an additional point and increases the competitiveness of their applications to TDHCA.Staff requests that City Council approve commitments of development funding in the form of fee waivers for each development that is recommended for a Resolution of Support. For these two developments,the approximate amount of the fee waivers is$49,926.00 as outlined below.The fee waiver amount may be applied to(a)all building permit related fees(including Plan Reviews, Inspections and Re-inspection Fees); (b)Plat/Replat Application Fees; (c)Board of Adjustment Application Fees; (d) Demolition Fees;(e) Structural Moving Fees;(f)Zoning Fees;(g)Street/Alley and Utility Easement Vacation Application Fees;(h)Ordinance Inspection Fees; (i) Consent/Encroachment Agreement Application Fees; Q) Urban Forestry Application Fees; (k)Sign Permit Fees; (1)Community Facilities Agreement(CFA)Application Fees;and (m) Floodplain Development Fees. Fee waivers will be conditioned upon the development receiving an award of 2023 housing tax credits from TDHCA.The City's Neighborhood Services Department will be responsible for verifying that the public purpose for the fee waivers is carried out.The amounts listed are estimated fees,but this M&C authorizes the waiver of the actual amount of any listed fees once such fees are determined. In the event any of these fees were A previously paid,approval of this M&C authorizes City staff to refund such payments. Fees 7340 Kingswood Reserve at Senior Living Basswood All Building Permit Related Fees $20,081.00 $18,153.00 Plat Application Fee $625.00 $650.00 Community Facilities Agreement(CFA) $2,230.00 $2,230.00 Application Fee Zoning Application Fee $2,700.00 $2,700.00 Urban Application $250.00 $250.00 Forestry Fee Sign Permit Fee $57.00 $0.00 Estimated Development $25,943.00 $23,983.00 Fees Total* 'Per the 2023 HTC Policy,developments awarded a Resolution of Support for may be eligible for waivers of Transportation Impact and Water and Wastewater Impact fees. Developers must work with the respective departments to determine the eligibility and amount of those waivers, if any. Other Considerations All of the proposed developments recommended for a resolution are subject to all applicable City laws,ordinances, policies and procedures including those pertaining to zoning changes and annexation.Council member support for purposes of approving these Resolutions does not constitute approval of any required zoning change or annexation. The proposed developments are located in COUNCIL DISTRICTS 4 and 6/Future COUNCIL DISTRICTS 4 and 6. A Form 1295 is not required because:This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that approval of these recommendations will have no material effect on City funds. Submitted for City Manager's Office by: Fernando Costa 6122 Originating Business Unit Head: Victor Turner 8187 Additional Information Contact: Vidal Turner 8187 Expedited